{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

taxation v3

# taxation v3 - Tutorial Question Group members Samuel Cheng...

This preview shows pages 1–10. Sign up to view the full content.

Tutorial Question 25 Group members: Samuel Cheng Priscilla Chow Queenie Yip

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Pooling System IRO - s.39B and s.39D Assets of same rate of annual allowance (A.A.)  are pooled Types of allowances: (1) Initial allowance (I.A.)  60% on qualifying expenditure (2) Annual allowance (A.A.)  10%, 20% or 30% on the reducing value of the pool  each  year
Depreciation Allowances for the year of assessment 2007/2008 10% 20% 30% Total \$ \$ \$ \$ WDV at 1.4.2007 1,550,000 205,000 1,580,000 Additions: Funiture Less:IA Truck Less:IA Motor Car Disposals: Furniture Truck Motor Car Less:AA

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
D.A. computation Transaction (1):  On 1 July 07,  New furniture was acquired at a cost of \$150,000 The old furniture was disposed and \$9000 was received
10% 20% 30% Total \$ \$ \$ \$ WDV at 1.4.2007 1,550,000 205,000 1,580,000 Additions: Furniture 150,000 Less:IA -90,000 Truck Less:IA Motor Car 265,000 Disposals: Furniture -9,000 Truck Motor Car Depreciation Allowances for the year of assessment 2007/2008

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
D.A. computation Transaction (2): On 30 Sep 07,  A new truck was purchased at \$100,000 A truck was sold at \$45,000
Depreciation Allowances for the year of assessment 2007/2008 10% 20% 30% Total \$ \$ \$ \$ WDV at 1.4.2007 1,550,000 205,000 1,580,000 Additions: Furniture 150,000 Less:IA -90,000 Truck 100,000 Less:IA -60,000 Motor Car 265,000 Disposals: Furniture -9,000 Truck -45,000 Motor Car

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
D.A. computation Transaction (3): On 1 Jan 08 , Mr. Wong put his own private car into business use Cost of the private car = \$120,000(bought on 15 Oct 05 )
Transaction (3): Private car(30%): Cost at 2005                                            \$120,000 Less: Notional Allowance(05/06)         (36,000)                                                                     84,000 Less: Notional Allowance(06/07)         (25,200) Cost at 2008                                               \$58,800 X 30% X 30%

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}